Discover more from The Occasional Speculator
As Bonds Break can Stocks be far Behind???
Anyone who followed me into shorting the June 2022 Eurodollar and has been frustrated at the lack of a drop can be comforted (at least slightly) by Friday October 9th’s action…
This should explain why I am now short (with a 15100 buy stop) the stock market (NASDAQ) too:
Now that the Treasury is free- via the temporary until December lift of the debt ceiling- to auction off huge amounts (like $600B per month in both October and November) of Treasuries the question is who- other than the Fed and those the Fed pays- will buy the Treasuries yielding an all time LOW?
I believe the total media assurance that the Fed still controls interest rates and therefore you can ignore the little man behind the curtain’s (actually the Treasury Secretary Yellen is a little lady) desperate need to get the Federal government cash via auctions is the ELEPHANT IN THE ROOM
If you have to buy any stock I recommend gold and/or silver mining stocks
Big Bob the Bond (and 2022 Eurodollar) Bear